According to reports, the agreement will enable Microsoft to incorporate comic and movie stars like Spider-man, the X-Men and The Hulk in a new list of massive multiplayer online (MMO) games, with the first title expected in 2008.

Marvel is thought to have claimed that the contract will be its first and only MMO pact. It will also be Microsoft’s first for a console.

MMO games allow players in various to compete against each other.

The move follows the launch of the company’s fee-based online console gaming network, Xbox Live, last November.